UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549 FORM 10-QSB
(x )QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934For the quarterly period ended September 30, 2000
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( )TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the transition period from to
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Commission File number 000-25579
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HADRO RESOURCES, INC.
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(Exact name of registrant as specified in charter)
Nevada 87-0571853
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
50 West Liberty Street, Suite 880, Las Vagas NV 89501
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(Address of principal executive offices) (Zip Code)
(702) 433-5250
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Registrant's telephone number, including area code
145 Tyee Road #1526, Point Roberts, WA 98281
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(Former name, former address, and former fiscal year,
if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), Yes [ x ] No [ ] and (2) has been subject to
such filing requirements for the past 90 days. Yes [x ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.
Class Outstanding as of September 30, 2000
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Common Stock, $0.001 13,054,200
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INDEX
Page
Number
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PART I.
ITEM 1. Financial Statements (unaudited).................................................3
Balance Sheets...................................................................4
September 30, 2000 and December 31, 1999
Statements of Operations.........................................................5
For the three and nine months ended September 30, 2000 and 1999
and the period December 3, 1997 to September 30, 2000
Statements of Cash Flows.........................................................6
For the nine months ended September 30, 2000 and 1999
and the period December 3, 1997 to September 30, 2000
Notes to Financial Statements....................................................7
ITEM 2. Plan of Operations..............................................................10
PART II. Signatures......................................................................10
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PART I - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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The accompanying balance sheets of Hadro Resources, Inc. (exploration stage
company) at September 30, 2000 and December 31 1999, and the related statements
of operations for the three and nine months ended September 30, 2000 and 1999
and the period December 3, 1997 to September 30, 2000, the statement of cash
flows for the nine months ended September 30, 2000 and 1999, and the period
December 3, 1997 to September 30, 2000, have been prepared by the Company's
management and they do not include all information and notes to the financial
statements necessary for a complete presentation of the financial position,
results of operations, cash flows, and stockholders' equity in conformity with
generally accepted accounting principles. In the opinion of management, all
adjustments considered necessary for a fair presentation of the results of
operations and financial position have been included and all such adjustments
are of a normal recurring nature.
Operating results for the quarter ended September 30, 2000, are not necessarily
indicative of the results that can be expected for the year ending December 31,
2000.
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HADRO RESOURCES, INC.
(Exploration Stage Company)
BALANCE SHEETS
September 30, 2000 and December 31, 1999
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Sept 30 Dec 31
2000 1999
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ASSETS
CURRENT ASSETS
Cash .............................................. $ 265 $ 9,197
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Total Current Assets .............................. 265 9,197
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OTHER ASSETS
Mineral leases - Note 3 .......................... -- --
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$ 265 $ 9,197
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - related parties ............... $ 4,049 $ 1,651
Accounts payable ................................ 46,543 4,097
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Total Current Liabilities ..................... 50,592 5,748
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STOCKHOLDERS' EQUITY
Common stock
100,000,000 shares authorized, at $0.001 par
value; 13,054,200 shares issued and outstanding ...... 13,054 13,054
Capital in excess of par value ................... 151,095 126,795
Deficit accumulated during the development stage . (214,476) (136,400)
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Total Stockholders' Equity (deficiency) ....... (50,327) 3,449
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$ 265 $ 9,197
========= =========
The accompanying notes are an integral part of these
financial statements.
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HADRO RESOURCES, INC.
(Exploration Stage Company)
STATEMENTS OF OPERATIONS For
the Three and Nine Months Ended September 30,
2000, and 1999 and the Period December 3, 1997 (Date of Inception) to September 30, 2000
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Three Months Three Months Nine Months Nine Months
Sept 30, Sept 30, Sept 30, Sept 30, Dec 3, 1997 to
2000 1999 2000 1999 Sept 30, 2000
---- ---- ---- ---- -------------
<S> <C> <C> <C> <C> <C>
REVENUES ....... $ -- $ -- $ -- $ -- $ --
EXPENSES ....... 38,240 19,870 78,076 84,036 214,476
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NET LOSS ....... $ (38,240) $ (19,870) $ (78,076) $ (84,036) $ (214,476)
============ ============ ============ ============ ============
GAIN (LOSS) PER
COMMON SHARE
Basic ..... $ -- $ -- $ -- $ (.01)
------------ ------------ ------------ ------------
AVERAGE
OUTSTANDING
SHARES
Basic ..... 13,054,200 13,054,200 13,054,200 13,054,200
------------ ------------ ------------ ------------
The accompanying notes are an integral part of these financial
statements.
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HADRO RESOURCES, INC.
(Exploration Stage Company)
STATEMENT OF CASH FLOWS For
the Nine Months Ended September 30, 2000 and
1999 and the Period December 3, 1997 (Date of Inception) to September 30, 2000
Sept 30 Sept 30 Dec 3, 1997
2000 1999 to Sept 30, 2000
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CASH FLOWS FROM
OPERATING ACTIVITIES
<S> <C> <C> <C>
Net loss .................................... (78,076) (84,036) $(214,476)
Adjustments to reconcile net loss to
net cash provided by operating
activities
Contributions to capital - expenses .. 24,300 19,250 74,100
Changes in accounts payable .......... 44,844 24,282 50,593
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Net (decrease) in Cash From Operations (8,932) (40,504) (89,783)
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CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of mineral lease .............. -- -- --
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CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of common stock -- -- 90,048
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Net Increase (Decrease) in Cash ............. (8,932) (40,504) 265
Cash at Beginning of Period ................. 9,197 59,139 --
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Cash at End of Period ....................... $ 265 $ 18,635 $ 265
========= ========= =========
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The accompanying notes are an integral part of these
financial statements.
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HADRO RESOURCES, INC.
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
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1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on December
3, 1997 with authorized common stock of 100,000,000 shares at $0.001 par value
with the name "Hadrosaurus Resources, Inc". On January 12, 1998 the name was
changed to Hadro Resources Inc.
The Company was organized for the purpose of acquiring and developing mineral
properties.
The Company is in the exploration stage.
Since its inception the Company has completed a Regulation D offering of
4,174,200 shares of its capital stock for cash.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
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The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
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The Company has not yet adopted a policy regarding payment of dividends.
Income Taxes
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On September 30, 2000, the Company had a net operating loss carry forward of
$214,475. The tax benefit from the loss carry forward has been fully offset by a
valuation reserve because the use of the future tax benefit is doubtful, since
the Company has no operations.
The loss carryover will expire starting in 2014 through 2022
Earnings (Loss) Per Share
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Earnings (loss) per share amounts are computed based on the weighted average
number of shares actually outstanding.
Environmental Requirements
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At the report date environmental requirements related to the mineral claims
acquired (note 3) are unknown and therefore an estimate of any future cost
cannot be made.
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HADRO RESOURCES, INC.
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS (Continued)
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Amortization of Capitalized Mineral Lease Costs
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Costs of acquisition, exploration, carrying, and retaining unproven properties
are expensed as incurred. Costs incurred in proving and developing a property
ready for production are capitalized and amortized over the life of the mineral
deposit or over a shorter period if the property is shown to have an impairment
in value. Expenditures for equipment are capitalized and depreciated over their
useful lives.
Financial Instruments
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The carrying amounts of financial instruments, including cash and accounts
payable, are considered by management to be their estimated fair values. These
values are not necessarily indicative of the amounts that the Company could
realize in a current market exchange.
Estimates and Assumptions
-------------------------
Management uses estimates and assumptions in preparing financial statements in
accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Actual results could vary from the estimates that were assumed in
preparing these financial statements.
Comprehensive Income
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The Company adopted Statement of Financial Accounting Standards No. 130. The
adoption of this standard had no impact on the total stockholder's equity.
Recent Accounting Pronouncements
--------------------------------
The Company does not expect that the adoption of other recent accounting
pronouncements will have a material impact on its financial statements.
3. ACQUISITION OF MINERAL LEASES
During June 1999 the Company acquired a 100% working interest in 35 oil and gas
leases covering 6,174 acres located in Union County, New Mexico with an annual
rental of $.25 per acre until 2002 and then $.50 per acre until 2007. The leases
carry a royalty of 16.5%
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HADRO RESOURCES, INC.
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS (Continued)
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4. RELATED PARTY TRANSACTIONS
Related parties have acquired 58% of the common stock issued.
5. GOING CONCERN
The Company does not have the necessary assets to be successful in its efforts
to develop its oil and gas properties and will need to acquire additional
working capital.
Continuation of the Company as a going concern is dependent upon obtaining
additional working capital and the management of the Company has developed a
strategy, which it believes will accomplish this objective through additional
equity funding, and long term financing, which will enable the Company to
operate for the coming year.
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ITEM 2. PLAN OF OPERATIONS
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During June 1999 the Company acquired a 100% working interest in 35 oil and gas
leases covering 6,174 acres located in Union County, New Mexico with an annual
rental of $.25 per acre until 2002 and then $.50 per acre until 2007. The leases
carry a royalty of 16.5%
The Company does not have the necessary working capital to be successful in its
efforts to develop its oil and gas properties and will need to acquire
additional working capital.
Continuation of the Company as a going concern is dependent upon obtaining the
working capital to provide working capital for its planned activity. The
management of the Company has developed a strategy, which they believe can
obtain the needed working capital through additional equity funding and long
term debt which will enable the Company to be successful in its planned efforts.
Liquidity and Capital Resources
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The Company will need additional working capital to to finance its planned
activity.
Results of Operations
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The Company has had no operations during this reporting period.
PART 2 - SIGNATURES
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned there unto duly authorized.
HADRO RESOURCES, INC.
[Registrant]
/s/ Grant Atkins
Dated October 25 , 2000 By
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Grant Atkins, President
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